Detroit, Michigan was long seen as a symbol of American urban decline. A onetime industrial powerhouse fueled by the rise of the automotive industry, the city hit rock bottom with its 2013 bankruptcy, the largest ever filed by a U.S. city, after decades of deindustrialization, population loss and financial mismanagement.
But today, Detroit is showing signs of a comeback thanks, in large part, to the mayor Mike Duggan. That revival, however, comes at a cost. As the city grows, so do rents and living expenses, making it increasingly inaccessible to anyone just starting out.
Booming business
In 2013, Duggan was elected as the city’s mayor. Elected through an overwhelming majority of write-in votes, Duggan was an unlikely independent candidate who took immediate action to revitalize the city. At the start of his mayoral term, Detroit was $18 billion in debt. Today, the city has been transformed into a booming business center, with $550 million in reserve funds. Duggan and city officials managed to decrease the crime rate year over year. As Detroit began to flourish again – with General Motors and Ford once more leading the way – it became an increasingly attractive location for families and professionals to settle down.
On July 30, The New York Times reported that Detroit has outpaced all other U.S. cities in population growth, and has seen a return of residents and new interest from people looking to escape the suburbs without the stress of a big city. The city responded by buying up old, dilapidated buildings and restoring them to facilitate new rental and ownership properties and provide space for new businesses to move in. Despite the city’s progress, Detroit has become significantly less affordable, reducing opportunities for residents, straining the well-being of those most in need and pushing the city out of reach of entry-level professionals.
Affordability crisis
With housing costs below the national average of $2,617 monthly, Detroit appears to be an affordable, creative industrial hub. However, residents are reportedly spending over 30% of their income on housing, and 40% of adults and 57% of children live below the federal poverty line, according to Future City.
Programs like the Detroit Lifeline Plan, which forgives debt and lowers water bills for qualifying low-income residents, are helping, but it’s not enough. Through Detroit’s revitalization programs, the city has begun to push out residents who don’t fit the demographic able to spend the money on the new constructions and businesses.
The median gross rent sits at $1,763. While new transportation options such as the People Mover and the MoGo bike system offer some relief, the city remains largely car-dependent. Limited transit access – combined with rising gas prices and emissions – means that those living in or near poverty are often trapped in a cycle of spending on basic necessities rather than saving or building stability.
Moving forward
The revitalization of Detroit, especially its downtown area, isn’t something to frown at, though. Duggan’s inspiring mayoral direction of the city brought it back from the brink of destruction and has continued to build its value. But that doesn’t mean the residents who are struggling to survive there should just be left behind in pursuit of higher returns on investment.
As Duggan launches a campaign for governor, with some surprising support from GOP donors he hadn’t previously engaged, it’s time to look toward Detroit’s next chapter. The incoming mayor must not only sustain the city’s recent boom, but also prioritize affordability for long-term residents and newcomers trying to build a life. Expanding affordable housing, especially for those navigating the lowest median household income in the nation after adjusting for cost of living, would help to reshape Detroit into a place where both returning and new residents can put down permanent roots.
